CHICAGO (May 30, 2003) — Fleet shipper USF Corp. has struck two-year supply agreements with Michelin North America Inc. and Bridgestone Americas Holding Inc. for original equipment and replacement tires and with Bandag Inc. for retreaded tires for its fleet of 10,000 power units and 20,000 trailers.
These are three of a series of centralized purchasing contracts USF has signed this year to leverage its nearly $500 million annual spending on goods and services across its various operating companies.
Chicago-based USF—previously USFreightways Corp.—provides a full range of supply chain management services through a network of independently operated companies that compete collectively.
"USF has built its business on bringing supply chain expertise to our customers," said Samuel K. Skinner, USF chairman, president and chief operating officer. "Now we´re using that expertise, as well as our procurement experience, to streamline our own supply chain and create greater cost-efficiencies on a corporate-wide basis."
USF expects to save millions of dollars through this initiative, although it said pricing is only one element of the partnerships. The company said it also is working with each of its vendors to maximize efficiency at each step of the supply chain.
USF covers North America with five regional less-than-truckload trucking companies—USF Bestway, USF Dugan, USF Holland, USF Red Star, and USF Reddaway.
The firm said it would continue to seek strategic partners for other categories of fleet and non-fleet related spending, including telecom, fuel procurement (both bulk and truck stop) and other major corporate needs.